Question

A business produces picnic tables and benches. The business currently produces 20 tables and 10 benches per week. An increase in demand for benches has the business considering a change to 15 tables and 15 benches per week. What is the trade-off the business must make?(1 point)
A. The choice between the net profit of the new production schedule and the net profit of the old production schedule
B. The difference between the profit of 20 tables and the profit of 15 tables
C. the difference between the profit of 10 benches and the profit of 15 benches
D.the choice between the cost of the new production schedule and the cost of the old production schedule

Answer 1

The trade-off that the business will have to make is A. The choice between the net profit of the new production schedule and the net profit of the old production schedule.

Trade-off is:

• Something that a business gives up in order to make profit elsewhere

The tradeoff here therefore, is the net profit that the company used to make with its old production schedule. It is giving this up in order to make profit from the new schedule that requires more benches to be produced.

In conclusion, the tradeoff is the old profit for the new profit.

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